Charity Bank, the lender that supports charities and social enterprises, has said it will not break even until 2012, two years later than it originally predicted, because of problems caused by the recession.
Malcolm Hayday, chief executive of the bank, which is in its seventh year of trading, said his organisation had been hit by the steep drop in interest rates during the past year, as well as several other problems outside its control.
"We didn't carry out a plan to raise capital in 2008 because of the economic conditions," he said. "We also had to make a substantial contribution to the Financial Services Compensation Scheme.
"We're deliberately taking our time to build a sustainable marketplace, and that means it will take us a little longer to become profitable."